Estate Planning

Estate Planning

A donor–advised fund can serve as a valuable tool for estate planning purposes, and — unlike most planned giving alternatives — has no set-up costs, low ongoing expenses, and no additional taxes assessed.
For some donors, the account is an attractive alternative to a private foundation. For others, the donor-advised fund account can serve as a strategic complement to an existing foundation, trust, or supporting organization.
Preferred Tax Treatment
  • Assets contributed to a donor-advised fund account are removed from your taxable estate. These assets will avoid all transfer and income taxes, leaving more money available for charity.
  • Appreciated assets contributed to a donor-advised fund account avoid capital–gains taxes and are typically eligible for an income–tax deduction at full value.1
  • Unlike most other planned giving alternatives, there are no additional taxes or filing requirements.
A Legacy of Charitable Giving
  • You can name the account (e.g. "The Jane Smith Fund for the Arts"), and decide whether you want to recommend grants anonymously, or with acknowledgment.
  • You can involve your family in recommending grants, to engage them in family philanthropy and encourage a tradition of giving.
  • You can name successors to the account in order to ensure a legacy of charitable giving for future generations.
We are happy to talk with you or with your advisor to discuss how the donor-advised fund account can be integrated into your estate plan.
(1) Contributions of securities held for one year or longer are fully deductible at fair market value (FMV); securities held for less than one year have the same AGI limits as cash contributions (50%), but the valuation is based on the lesser of the cost basis or FMV. Contributions that exceed AGI limitations may be carried forward and deducted for five years. A donor's ability to claim itemized deductions may be subject to further limitations depending upon the donor's specific tax situation. Donors should consult their tax advisors.
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